A FIRM backed by David Beckham that uses cannabis-derived chemicals to make skincare products has slumped.
Cellular Goods suffered a pre-tax loss of almost £6million in the year to August 31 after a £3.33million loss last year.
Bosses blamed higher costs, slower than expected sales as well as challenging industry and regulatory conditions.
It raised £13million when it launched on the stock market last year amid fanfare about the cannabinoid sector.
The firm, whose shares fell almost 24 per cent yesterday, plans to acquire rival Cannaray Brands.
Chairman Darcy Taylor said the aim was to “accelerate growth and generate long-term value for shareholders”.